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Presentation Q1 2011

- SpareBank 1 Nord-Norge is a regional bank headquartered in Tromsø, Norway with 5 regions and 76 local branches. It reported its 1st quarter results for 2011. - The bank saw growth in Northern Norwegian trade and industry, with low unemployment of 2.8%, more money in households, and scarcity of competent labor as a challenge. - Financially, the bank reported a profit for the period of NOK 333 million, with a return on equity of 23.3%. It is pursuing goals like a core capital ratio of 11% or higher and cost/income ratio below 50% going forward.

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Presentation of 1st Quarter Report 2011 Oslo, 28 April 2011 1 1
SpareBank 1 Nord-Norge Group Headoffice: Tromsø Organization: 5 regions Regional branches: Hammerfest Tromsø Harstad Bodø Mo i Rana Local branches: 76 Number of man-years Group: 788 2
Organisation of the financial services Group SpareBank 1 Nord-Norge Financial Services Group SpareBank 1 Gruppen AS Financial Services Group Equity stake 19,5 % SpareBank 1 Nord-Norge SpareBank 1 Utvikling DA Invest ASA Systems development Investment company Equity stake 17.74 % Equity stake 100 % - Tromsø SpareBank 1 Finans Bank 1 Oslo AS Leasing/factoring Bank - Bodø Equity stake 100 % Equity stake 19.5 % - Tromsø EiendomsMegler 1 SpareBank 1 Boligkreditt AS - Bodø Nord-Norge AS Covered Bonds Company Real estate brokerage - Alta Equity stake 15.74 % Equity stake 100 % - Hammerfest - Kirkenes North-West 1 Alliance Bank SpareBank 1 Næringskreditt AS - Mo i Rana Financing Bank - Harstad Equity stake 75 % Commercial property Equity stake 23.5 % - Sandnessjøen - Finnsnes SpareBank 1 Nord-Norge BN Bank ASA Forvaltning ASA Bank Asset Management Equity stake 23.5 % Equity stake 100 % 3
Status and possibilities 4
Northern Norwegian trade and industry on the right track • Growth in production in Northern Norwegian trade and industry – Export records in the marine sector – Increasing export of industrial products – Increasing activity in Northern Norwegian industry – Major increase in number of foreign tourists – Winter tourism increasing • Large investment plans ensure growth – Further development of oil and gas – Investment plans in electricity supply • Continued low unemployment: 2.8% completely unemployed in March 3 counties • Great faith in continued growth in 88 municipalities turnover and more jobs in Northern 465,000 inhabitants Norwegian enterprises 5
More money in households • Increase in turnover in retail • Increase in sales of new cars • Higher increase in deposits in Northern Norway than in the rest of the country • Higher expectations among households – with regard to own economy – with regard to the region's economy 6
Scarcity of competent labour a challenge Competition for labour • Scarcity of labour – a threat to the growth potential of trade and industry • Scattered settlement and numerous small businesses represent a challenge in the struggle for labour • Apprentices will be an important recruitment strategy • Demographic developments lead to greater demands for public services Trade and industry requires competence • Competence: Formal and informal knowledge, abilities and attitudes • Competent labour of vital importance for innovation and added value • Informal competence important to uphold diversity in Northern Norwegian trade and industry 7
Low unemployment in Northern Norway Low unemployment – a challenge to the region Northern Norway Norway Num Numb • Unemployment in Northern Norway % % ber er lower than the country average Completely 6,82 74,19 2.8 2.9 unemployed 7 0 • Aging population reduces the working population 1,52 18,02 In schemes 0.6 0.7 7 2 Gross 8,35 92,21 • Increased competence mismatch 3.4 3.6 unemployed 4 2 4,00 30,87 • Recruitment problems greater than Available jobs 3 9 country average in all sectors Job offers ratio (Gross 2.1 3.0 • Lack of qualified labour may limit unemployed/a investments in the north vailable jobs) Source: NAV, 1 April 2011 8
Financial goals • Solidity • Profitability • Top line growth • Effectivenss • Market shares 9
Financial goals: New goals for capital adequacy ratio (December 2010) • Core capital ratio: 11 per cent or higher • SpareBank 1 Nord-Norge aims to emerge as an undisputedly solid bank. • The capital adequacy goal is based on the Group's internal capital adequacy assessment process (ICAAP). The capital goal is expressed based on the current statutory regulation of capital adequacy. • The Group's capital adequacy in a projected crisis scenario must have adequate buffers so that the core capital adequacy does not fall below 8 per cent. Adaptation to the goal of a capital adequacy ratio of 11 per cent will take place over time. With the expected profit performance the Group aims to achieve this goal by the end of 2013. 10
Capital adequacy ratio - Group Parent bank Group (Amounts in NOK million) 31.12.10 31.03.10 31.03.11 31.03.11 31.03.10 31.12.10 4 351 3 895 4 187 Core capital 5 259 4 687 5 334 549 575 552 Supplementary capital 490 636 515 4 900 4 470 4 739 Equity and related capital resources 5 749 5 323 5 849 Minimum requirements subordinated capital, Basel I I 1 954 1 876 1 886 Total credit risk IRB 1 779 1 762 1 840 607 569 636 Credit risk standardised approach 1 647 1 362 1 492 130 73 216 Debt risk 216 73 126 19 18 16 Equity risk 65 36 46 17 0 16 Currency risk 16 0 17 242 242 258 Operational risk 273 284 284 0 0 0 Transitional arrangements 52 173 226 - 71 - 69 -71 Deductions - 117 - 78 - 114 2 898 2 709 2 957 Minimum requirements subordinated capital 3 931 3 612 3 917 13.53 % 13.18 % 12.82 % Capital adequacy ratio 11.70 % 11.79 % 11.95 % 12.01 % 11.49 % 11.33 % Core capital ratio 10.70 % 10.38 % 10.90 % 11
Equity - bonus issue and split completed Bonus issue • NOK 298.5 million transferred from the Dividend Equalisation Fund to the Equity Certificate Capital. After this, the Dividend Equalisation Fund amounts to: NOK 155 million • Number of equity certificates increased; 3 old certificates entitled the bearer to 1 new • The equity certificate holders' priority with regard to capital and risk improved Split: • Each equity certificate split in two. The new nominal value per equity certificate is NOK 25. Desired effect of bonus issue and split: • Increased liquidity in the equity certificate • Will contribute to make the equity certificate more available and thereby strengthen the financial instrument's position as well-suited for private savings. 12
Equity ratio - rights issue and private placement approved Rights issue up to NOK 450 million: • Purpose: Improve the Bank's financial strength and increase the liquidity in the equity certificates • Amount: NOK 450 million - guaranteed fully subscribed • Subscription price determined by the Bank's Main Board of Directors on 5 May 2011 in line with market practice. Probable price 20-30% lower than market price. • Application for approval of prospectus is being processed by the Financial Supervisory Authority of Norway A private placement of up to NOK 150 million • Three target groups: • The Savings Bank Foundation (the foundation has at its disposal NOK 154.6 million) • Employees, members of the Bank's Main Board of Directors and regional boards of directors • One or more selected institutional investors (optional) • Will be carried out in accordance with normal market conditions after completion of the rights issue • Any premium that exceeds book equity per equity certificate on a group basis will be split between the equity certificate premium reserve and the compensation fund relative to the equity certificate ratio after the issue. 13
The Foundation, Sparebankstiftelsen SpareBank 1 Nord-Norge • In March 2010, the Bank's Supervisory Board resolved to establish the foundation "Sparebankstiftelsen SpareBank 1 Nord-Norge" • The principal purpose of the foundation is to exercise a long-term, stable ownership of SpareBank 1 Nord-Norge, including participation in future new issues by the Bank. • Totals of NOK 30.5 million and NOK 124.1 million were set aside for this foundation in the year-end allocations for 2009 and 2010 respectively. • Establishment of the foundation has been approved by the Financial Supervisory Authority of Norway • The Foundation's Board of Directors and general assembly have been formally elected. Chairman of the Board: former Director Information og Public Relations, Kjell Kolbeinsen 14
SpareBank 1 Nord-Norge - issues SpareBank 1 Nord-Norge - issues Provisional time schedule (key dates): • March/April 2011: Supervisory Board meetings; formal approval granted Bonus issue and split completed • 5 May 2011 Determination of conditions and pricing for the issues • 6 May 2011: The equity certificates are converted to exclusive rights to receive subscription rights to the rights issue • 12-26 May 2011: Subscription period and trading of subscription rights on Oslo Børs (the Oslo Stock Exchange) • 01 June 2011: Allocation of new equity certificates in the rights issue • 07 June 2011: Listing of new equity certificates from the rights issue on Oslo Børs 15
Financial targets • Capital adequacy ratio • Effectiveness – Core-capital coverage: – The targeted cost ratio is 11 % or higher maximum 50 % of income and shall be comparable to the level of competing banks in Norway • Profitability – ROE shall be comparable • Top-line growth to the performance of competing banks in – The growth in interest Norway. The targeted contribution and provisions is after-tax return is targeted to be 2 percentage minimum 6 percentage points above the growth in points above the yield on operating costs long-term government bonds 16
Profit and loss account - Group (Amounts in NOK million) 31.03.11 31.03.10 Net interest income 275 272 Net fee-, commision and other operating income 120 121 Net income from financial investments 242 76 Total net income 637 469 Total costs 246 188 Result before losses and write-downs 391 281 Net losses and write-downs 10 21 ROE Result before tax 381 260 23.3 % Tax 48 56 Minority interests 0 0 Result for the period 333 204 17
Quarterly Summary – Profit and loss account figures (Amounts in NOK million) 1Q11 4Q10 3Q10 2Q10 1Q10 Net interest income 275 285 291 281 272 Net fee-, commision and other operating income 120 128 131 133 121 Net income from financial investments 242 148 76 104 76 Total net income 637 561 498 518 469 Total costs 246 276 237 256 188 Result before losses and write-downs 391 285 261 262 281 Net losses and write-downs 10 43 1 22 21 Result before tax 381 242 260 240 260 Return on equity capital 23.3 % 15.3 % 15.6 % 15.6 % 15.9 % Cost/income 38.6 % 49.2 % 47.6 % 49.4 % 40.1 % 18
Quarterly Summary – net fee-, commision and other operating income (Amounts in NOK million) 1Q11 4Q10 3Q10 2Q10 1Q10 Guarantee c ommissions 4 4 4 4 3 Other fee- and commission inc ome 134 143 145 148 139 Fee- and commission inc ome 138 147 149 152 142 Fee- and commission costs 19 22 21 20 22 Net fee- and commission inc ome 119 125 128 132 120 Other operating income 1 1 -1 1 1 Operating- and sales income real estate 0 2 4 0 0 Total commissions and other income 1 3 3 1 1 Net fee-, c ommision and other operating income 120 128 131 133 121 19
Total commission and other income Per 1Q (in NOK million) 1Q11 4Q10 3Q10 2Q10 1Q10 2011 2010 Guarantee commissions 4 4 4 4 3 4 3 Interbank commissions 5 7 9 9 8 5 8 C redit arrangement fee 3 4 4 4 3 3 3 Arrangement fee from SpareBank 1 Boligkreditt 24 19 19 24 27 24 27 Arrangement fee from SpareBank 1 Finans 0 0 1 0 1 0 1 Securities trading, administration and trust department services 11 14 7 14 12 11 12 Payment transmission services 48 51 56 50 46 48 46 Brokerage commission 15 16 23 20 14 15 14 Insurance services 24 27 25 24 24 24 24 Other commission income 4 5 1 3 4 4 4 Total commissions income 138 147 149 152 142 138 142 Operating- and sales income real estate 1 2 2 1 1 1 1 Other operating income 0 1 1 0 0 0 0 Total other operating income 1 3 3 1 1 1 1 C ommission expenses 19 22 21 20 22 19 22 Total commissions and other income 120 128 131 133 121 120 121 20
Group companies Result before tax 31.03.11 31.03.10 SpareBank 1 Finans Nord-Norge AS 17 104 15 667 SpareBank 1 Nord-Norge Invest AS 177 889 5 869 Eiendomsdrift AS 0 1 382 EiendomsMegler 1 Nord-Norge AS - 443 - 281 SpareBank 1 Nord-Norge Forvaltning ASA 447 816 North-West 1 Alliance Bank - 184 0 Total 194 813 23 453 21
Core banking activities (Amounts in NOK million) 31.03.11 31.03.10 Change Earnings before losses 149 205 -56 Net losses 10 21 11 A non-recurring effect of recognising income from reduced pension commitments 60 0 60 Core banking activities after 139 124 15 losses 22
Results – the Group In comparison with 2010, the reasons for the change in the pre-tax result are as follows: • Increase in net interest income + NOK 3 mill. • Reduction in net commission income - NOK 1 mill. • Increase in income from financial investments + NOK 166 mill. • Unchanged other operating income NOK 0 mill. • Increase in costs - NOK 58 mill. • Reduction in net losses + NOK 11 mill. Total + NOK 121 mill. 23
Very good underlying banking operations - (excl. income from financial investments) Group (Amounts in NOK million) 1Q11 4Q10 3Q10 2Q10 1Q10 Net interest income 275 285 291 281 272 Net fee- and commission income 119 125 128 132 120 Other operating income 1 3 3 1 1 Total costs 246 276 237 256 188 Income, core banking 149 137 185 158 205 Net losses and write-downs 10 43 1 22 21 Income, core banking after losses and write-downs 139 94 184 136 184 24
Net interest income - Group 4.00 % 350 300 3.00 % 250 200 2.00 % 150 100 1.00 % 50 0 0.00 % 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 NOK Million - Boligkreditt Perc.of aver.tot.ass. Perc. incl. Boligkreditt 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 NOK Million 302 279 294 298 272 281 291 285 275 - Boligkreditt 12 11 17 26 27 24 19 19 24 Perc.of aver.tot.ass. 1.87 % 1.70 % 1.77 % 1.85 % 1.70 % 1.73 % 1.74 % 1.66 % 1.61 % Perc. incl. Boligkreditt 1.78 % 1.61 % 1.67 % 1.74 % 1.59 % 1.58 % 1.56 % 1.61 % 1.56 % 25
Lending, Parent bank – corporate market Loan volum corporate Interest margin corporate 23 000 2.50 22 000 2.00 21 000 Interest contribution 20 000 The interest margin is 1.50 defined as the 19 000 difference NOK between the 18 000 customer 1.00 lending (deposit) 17 000 interest rate and the Bank's 16 000 average 0.50 capital markets 15 000 funding rate. 14 000 - jun.09 jun.10 mar.0 9 sep.09 dec.09 mar.10 sep.10 dec.10 mar.1 1 26
Lending, Parent bank – retail market Loan volum retail banking Interest margin retail banking 45 000 1.80 44 000 1.60 43 000 1.40 Interest contribution 42 000 1.20 The interest margin is 41 000 1.00 defined as the difference NOK between the 40 000 0.80 customer lending 39 000 0.60 (deposit) interest rate and the Bank's 38 000 0.40 average capital markets 37 000 0.20 funding rate. 36 000 - jun.09 jun.10 mar.0 9 sep.09 dec.09 mar.1 0 sep.10 dec.10 mar.1 1 27
Customer deposits, Parent bank – corporate market Deposit volum c orporate Interest margin corporate 21 000 2.00 20 000 1.80 1.60 19 000 Interest contribution 1.40 18 000 The interest 1.20 margin is 17 000 defined as the NOK 1.00 difference 16 000 between the 0.80 customer lending 15 000 0.60 (deposit) interest rate 14 000 0.40 and the Bank's average 13 000 capital 0.20 markets funding rate. 12 000 - jun.09 jun.10 mar.09 sep.09 dec.09 mar.10 sep.10 dec.10 mar.11 28
Customer deposits, Parent bank – retail market Deposit volum retail banking Interest margin retail banking 22 000 2.90 2.70 21 000 2.50 20 000 2.30 Interest contribution 19 000 2.10 The interest 1.90 margin is 18 000 defined as the NOK 1.70 difference 17 000 between the 1.50 customer lending 16 000 1.30 (deposit) interest rate 1.10 and the Bank's 15 000 average 0.90 capital 14 000 markets 0.70 funding rate. 13 000 0.50 jun.09 jun.10 mar.0 9 sep.09 dec.09 mar.10 sep.10 dec.10 mar.1 1 29
Financial targets • Capital adequacy ratio • Effectiveness – Core-capital coverage: – The targeted cost ratio is 11 % or higher maximum 50 % of income and shall be comparable to the level of competing banks in Norway • Profitability – ROE shall be comparable • Top-line growth to the performance of competing banks in – The growth in interest Norway. The targeted contribution and provisions is after-tax return is targeted to be 2 percentage minimum 6 percentage points above the growth in points above the yield on operating costs long-term government bonds 30
Group operating costs (NOK Million) 31.03.11 31.03.10 Change Wages and salaries 99 98 1 Pension costs 9 -48 57 Social costs 11 11 0 Total personnel costs 119 61 58 Administration c osts 68 69 -1 Total personnel- and general administration c osts 187 130 57 Deprec iation and write-downs of fixed assets 11 12 -1 Total operating costs 48 46 2 Total c osts 246 188 58 31
Group operating costs 300 53 % 51 % 250 49 % 200 47 % NOK mill. 45 % 150 43 % 100 41 % 39 % 50 37 % 0 35 % 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Group operating costs Cost/income 1Q11 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Group operating costs 243 226 227 276 188 256 237 276 246 Cost/income 50.1 % 50.8 % 39.3 % 42.4 % 40.1 % 49.4 % 47.6 % 49.2 % 38.6 % 32
Key figures balance sheet (Amounts in NOK million) STATEMENT OF Change Change % FINANCIAL POSITION 31.03.11 31.03.10 Total assets 68 202 64 086 4 116 6.4% Gross lending 49 638 48 429 1 209 2.5% Loans and advances to customers including agency 63 512 59 872 3 640 6.1% loans Deposits from customers 39 402 35 497 3 905 11.0% 33
Good development of customer deposits Deposits from customers 40 000 39 000 Volume according to 38 000 markets 31.03.11 37 000 36 000 35 000 Corp. 34 000 29 % Retail 33 000 51 % 32 000 Public 31 000 20 % 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 34
Deposit growth households Deposit growth households. 12 mth. growth 12 10 8 % 6 4 2 0 01 07 01 07 01 07 01 07 01 07 M M M M M M M M M M 06 06 07 07 08 08 09 09 10 10 20 20 20 20 20 20 20 20 20 20 SNN, Retail clients Households Source: Statistisk Sentralbyrå, The credit indicator C2, April 2011 & SNN Bare, March 2011 35
Deposit growth corporates Deposit growth corporates. 12 mth. growth 40 35 30 25 20 % 15 10 5 0 -5 -10 01 07 01 07 01 07 01 07 01 07 M M M M M M M M M M 06 06 07 07 08 08 09 09 10 10 20 20 20 20 20 20 20 20 20 20 SNN, Corporate clients Corporates Source: Statistisk Sentralbyrå, The credit indicator C2, April 2011 & SNN Bare, March 2011 36
Group lending portfolio according to markets Volume according to markets 31.03.11 70 000 Boligkreditt Loans and advances to customers Corp/ Pub 60 000 31 % Retail incl. Bolig- kreditt 69 % 50 000 40 000 Volume incl. Boligkreditt 30 000 20 000 Corp/ Pub Retail 39 % excl. Bolig- kreditt 10 000 61 % 0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Volume excl. Boligkreditt 37
Credit growth households Credit growth households. 12 mth. growth 18 16 14 12 10 % 8 6 4 2 0 01 07 01 07 01 07 01 07 01 07 M M M M M M M M M M 06 06 07 07 08 08 09 09 10 10 20 20 20 20 20 20 20 20 20 20 SNN, Retail clients Households Source: Statistisk Sentralbyrå, The credit indicator C2, April 2011 & SNN Bare, March 2011 38
Credit growth corporates Credit growth corporates. 12 mth. growth 24 22 20 18 16 14 12 % 10 8 6 4 2 0 -2 01 07 01 07 01 07 01 07 01 07 M M M M M M M M M M 06 06 07 07 08 08 09 09 10 10 20 20 20 20 20 20 20 20 20 20 SNN, Corporate clients Corporates Source: Statistisk Sentralbyrå, The credit indicator C2, April 2011 & SNN Bare, March 2011 39
Credit area • Quality • Portfolio • Migration, commitments in default and losses 40
Portfolio • High quality in lending portfolio. Steady level of default - still at low levels. • A cautious lending policy and growth in 2006 – 2009 and few corporate exposures in high risk industries has contributed to an overall low portfolio risk. • The Group's total write-downs in Q1 2011 is lower than the expected normalized level. • The Group’s corporate portfolio is well diversified • Growth in portfolio in sectors with low/moderate risk − Building and construction − Retail trade • Positive migration developments in corporate portfolio 41
Portfolio - exposure as of 31.03.11 30.000 25.000 20.000 NOK mill 15.000 10.000 5.000 0 Low risk Medium risk High risk Default/impaired Retail market C orporate market SB1 Boligkreditt 42
Risk change - portfolio change Q1/10 – Q1/11 43
Group lending by sector (NOK million) 31.03.11 Share 31.03.10 Share Change Change in % Mining and quarrying 70 0,1 % 8 0,0 % 62 775 % Construction 524 1,1 % 495 1,1 % 29 6% Building of ships and boats 21 0,0 % 20 0,0 % 1 5% Electricity, gas, steam an air conditioning supply 980 2,1 % 1 003 2,1 % - 23 -2 % Professional, scientific and technical activities 769 1,6 % 542 1,2 % 227 42 % Finanicial and insurance activities 0 0,0 % 80 0,2 % - 80 -100 % Fishing 1 016 2,2 % 1 496 3,2 % - 480 -32 % Marine aquaculture 206 0,4 % 174 0,4 % 32 18 % Other business support activities 260 0,6 % 267 0,6 % -7 -3 % Activities auxiliary to financial services and insurance activities 205 0,4 % 256 0,5 % - 51 -20 % County muncipalities and muncipalities 152 0,3 % 171 0,4 % - 19 -11 % Manufacturing 1 299 2,8 % 1 204 2,6 % 95 8% Information and communication 159 0,3 % 216 0,5 % - 57 -26 % Crop and animal production 776 1,6 % 679 1,5 % 97 14 % Foreign industrial 0 0,0 % 50 0,1 % - 50 -100 % Real estate activities 6 596 14,0 % 6 439 13,8 % 157 2% Accomodation and food service activities 378 0,8 % 356 0,8 % 22 6% Forestry and logging 5 0,0 % 3 0,0 % 2 67 % Central government and social security funds 0 0,0 % 0 0,0 % 0 0% Support activities for petroleum and natural gas extraction 1 0,0 % 1 0,0 % 0 0% Other service industries 685 1,5 % 686 1,5 % -1 0% Transportation and storage 1 082 2,3 % 961 2,1 % 121 13 % International shipping and pipeline transport 576 1,2 % 638 1,4 % - 62 -10 % Development of building projects 596 1,3 % 610 1,3 % - 14 -2 % Extraction of crude oil and natural gas 42 0,1 % 126 0,3 % - 84 -67 % Unspecified 0 0,0 % 0 0,0 % 0 0% Water supply; sewerage, waste management and remediation activities 105 0,2 % 95 0,2 % 10 11 % Wholesale and retail trade; repair of motor vehicles and motorcycles 1 396 3,0 % 1 211 2,6 % 185 15 % Retail banking market - domestic 29 228 62,0 % 28 826 61,8 % 402 1% Retail banking market - international 44 0,1 % 50 0,1 % -6 -12 % Total retail market 29 272 62,1 % 28 876 61,9 % 396 1% Total public market 17 747 37,6 % 17 616 37,8 % 131 1% Total government 152 0,3 % 171 0,4 % - 19 -11 % Total loans 47 171 100,0 % 46 663 100,0 % 508 1% 44
Portfolio of corporate property lending 100,0 % 90,0 % 86,1 % 80,0 % 70,0 % 60,0 % 50,0 % 40,0 % • Lowest – Low risk, expected 30,0 % loss 0 % - 0.50 % 20,0 % 7,1 % 6,8 % • Medium risk, expected 10,0 % loss 0.50 – 2.00 % 0,0 % Lowest - Low Medium High - Highest • High - Highest risk, expected loss above 2.00 % The portfolio of corporate property represents the Group's highest concentration concerning one single sector – Constitute about 11 percent of total volume The portfolio of corporate property is being dominated by commitments with low risk 45
Losses and commitments in default • Positive loss development. No new losses of essential character. • Commitments in default and commitments in certain sectors are monitored very closely. – Property projects – Property rentals – Housing co-operatives 46
Defaulted commitments 1000 2,5 % 900 800 2,0 % 700 600 1,5 % MNOK 500 400 1,0 % 300 200 0,5 % 100 Individual write-downs 0 0,0 % 31.12.04 31.12.05 31.12.06 31.12.07 31.12.08 31.12.09 31.12.10 31.03.11 Non-performing commitments 232 251 241 216 307 386 219 250 Bad and doubtful commitments 450 442 323 212 246 185 378 385 without write-downs Individual write-down for impaired 323 269 196 135 203 232 273 271 value Gross non-performing and impaired 2,6 % 2,3 % 1,6 % 1,1 % 1,3 % 1,3 % 1,4 % 1,4 % commitments 47
Losses on loans and guarantees - Group 350 1,40 % 300 1,20 % 250 1,00 % NOK mill 200 0,80 % 150 0,60 % 100 0,40 % 50 0,20 % 0 0,00 % -50 -0,20 % 2006 2007 2008 2009 2010 31.03.11 Net losses Net losses in % of gross lending incl.agency loans 2006 2007 2008 2009 2010 31.03.11 Individual write-downs for impaired value 20 55 202 163 133 15 Collective write-downs imp. value -36 -13 40 36 -39 -3 Recoveries, previously confirmed losses 27 25 59 14 7 2 Net losses -43 17 183 185 87 10 Net losses in % of gross lending incl.agency loans -0,09 % 0,03 % 0,32 % 0,31 % 0,14 % 0,06 % 48 48
Loss on lending: The Group's write-downs in 2011 Write-downs 1st quarter 1st quarter 2010 2009 2011 2010 Individual write-downs Retail market 5 5 16 13 Corporate market 8 15 100 127 SpareBank 1 Finans Nord-Norge 1 3 7 11 Other group units 0 0 4 1 Total individual write-downs 13 22 127 152 Collective write downs and other -3 -1 -40 33 value change items Total write-down on loans and 11 21 87 185 guarantees • The Group's total write-downs in 2011 is lower than the expected normalized level. 49
Securities 50
Income from financial investments (Amounts in NOK million) 31.03.11 31.03.10 Dividends 1 9 Income from joint ventures 49 41 Gains/losses and net value changes on certificates and bonds -27 11 Gains/losses and net value changes on shares 176 21 Gains/losses and net value changes on foreign exchange 8 8 Gains/losses and net value changes on other financial derivatives 35 -14 Income from financial investments 242 76 51
Interest-bearing portfolio ABS Industry, 0,1 % CDO Norway 1,0 % 4,7 % Subord. debt, Norway Fin. sector, 1,8 % Gov. cert. abroad 16,3 % Cert. 5,2 % 9,7 % Fin. sector, Norway 13,1 % Gov. guar. bonds Public bond % 2,2 0,8 % Covered bonds 45,1 % 52
Equity certificate holders 53
Equity Certificates (ECCs) - holder structure 35 31.03.10 31.03.11 30 25 20 % 30.7 15 23.1 25.4 27.0 25.2 20.4 10 5 6.3 5.2 0 10 largest Equity 20 largest Equity Holders residing in Foreign Holders Certificate holders Certificate holders North Norway 54
The 20 largest ECC holders as at 31.03.11 Number of Share of total Equity Certificate holders Equity Certificates Equity Certificate capital Pareto Aksjer Norge 2 711 884 5.68 % Protector Eiendom AS 1 491 664 3.12 % Pareto Aktiv 1 258 560 2.63 % MP Pensjon 1 115 410 2.34 % Frank Mohn AS 1 016 964 2.13 % Tonsenhagen Forretningssentrum AS 851 002 1.78 % Citibank N.A. 742 804 1.56 % Pareto VPF 645 112 1.35 % Framo Development AS 636 794 1.33 % Sparebanken Rogalands Pensjonskasse 586 882 1.23 % Forsvarets Personellservice 464 890 0.97 % Karl Ditlefsen, Tromsø 411 624 0.86 % Sparebankstiftelsen DNBNOR 409 274 0.86 % Nordea Bank Norge - markets 391 786 0.82 % Trond Mohn 382 076 0.80 % Nordisk Finans Invest A/S 350 880 0.73 % Fred Olsen & Co’s pensjonskasse 324 764 0.68 % Troms Kraft Invest AS, Tromsø 306 968 0.64 % Sparebank 1 Ringerike Hadeland 303 308 0.63 % Tromstrygd, Tromsø 258 666 0.54 % SUM 14 661 312 30.69 % 55
Liquidity/funding 56
Funding instruments/diversification as at 31.03.11 Category <1yr >1yr Total Lower Tier 2, EUR 0 0 0 Lower Tier 2, NOK 0 1.000 1.000 EMTN, EUR 2.022 309 2.331 Tier 1, Perpetual, USD 0 336 336 NOK BONDS 821 11.281 12.102 Government 1.000 0 1.000 Schuldschein, EUR 0 0 0 Cert's, NOK 0 0 0 Gov. swap arr. 0 2.562 2.562 TOTAL, SHORT TERM FUNDING 3.843 TOTAL, LONG TERM FUNDING 15.488 TOTAL, ALL FUNDING 19.331 57
Funding and liquidity management Maturity profile of capital markets funding as at 31.03.11 Funding Maturity Next 12 Months 2,250 2,000 1,750 • Good liquidity Billion NOK 1,500 1,250 1,000 0,750 • Liquidity buffer 9,2 billion NOK per 31.03.2011 0,500 0,250 0,000 may.2011 jun.2011 jul.2011 aug.2011 sep.2011 oct.2011 nov.2011 dec.2011 jan.2012 feb.2012 mar.2012 apr.2012 may.2011 Annual Funding Maturity • Net refinancing need next 12 months 4,7 billion NOK 6,000 5,000 4,000 Billion NOK 3,000 2,000 1,000 0,000 2011 2012 2013 2014 2015 2016 2017 58
Liquidity buffer as at 31.03.11 Liquidity Buffer 10,000 9,000 8,000 7,000 Billion NOK 6,000 5,000 4,000 3,000 2,000 1,000 0,000 1 2 3 1 2 11 12 12 13 1 11 2 12 3 11 11 11 12 12 12 1 2 1 12 2 13 3 .1 .1 .1 l.1 l.1 .1 .1 .1 t.1 t.1 r.1 r.1 r.1 n. n. n. n. g. p. v. c. g. p. v. c. b. b. ay ay ay ar ar ar ju ju oc oc ap ap ap ju ja ju ja au se no de au se no de fe fe m m m m m m • Liquidity buffer: Cash, drawing rights in Norges Bank, bond portfolio (not deposited in Norges Bank), equities and mortgage loans prepared for transfer to SpareBank 1 Boligkreditt. • Assumption: No new capital markets funding and 7 % growth in both lending and deposits. 59
Strategy 60
Strategy 2012 – Market forces The strongest market forces: • More stringent regulations and public control • Higher capital requirements, the banks are building capacity for growth • Higher funding costs • Increased pressure on margins • Increased customer power • Focus on profitable customers • Focus on new revenue opportunities • Simplified business models • Better risk management • Reduction of the cost level 61
Trends – The Finance Sector • Mobile solutions are becoming more important • The banks are facing challenges in terms of mobile payment solutions • Much focus on contact-free payment • Closer ties between – customer, customer needs and location and – The range of financial services offered will provide more effective solutions to customer and bank • More digital services • Development of customized customer solutions • Increased participation via online communities – dialogue through several channels 62
Trends – Consumer behaviour • Word of mouth increases its importance as an influence on behaviour and attitudes – Editorial publicity becomes less important • Digitization continues – electronic solutions preferred • Increased number of customers use payment cards, regardless of amount 63
Strategy 2012 – Higher market shares Objective • Higher market shares in all product groups Process and measures • Goal hierarchy adapted to the local market area and the bank's position • Clearer market positioning – Important customer segments – Important market areas • Increased activity aimed at existing and potential customers • Improved management information – Activity follow-up of advisers – Follow-up of branches with regard to results – Balanced score card 64
Strategy 2012 – Customer-oriented distribution Target • Clear differentiation and increased interaction between distribution channels Process and measures • Local bank– cultivate advisory services – Financing, savings, insurance – All advisers are to be authorised – Cashier desks to be phased out in 2011 – Larger entities, few traditional branches • Customer centre– first line and hub – First line customer service – Hub in channel interaction • Online bank and mobile bank; wider range of services in digital channels – Personal finance – Standard banking services – Simple advisory services 65
Strong growth in digital surfaces in 2010 • SMS notifications: 120,000 messages per month • 2,500 loan applications via internet as at December 2010 • The iPhone app downloaded 55,000 times. Android app downloaded 12,000 times (figures for SpareBank 1) • Interaction between digital and office channel increasingly important 66
Enhancing the efficiency of staff processes • Start-up project 2011 Lean: Create more with less • Project mandate – Purpose Flow in processes: Waste: Continual flow that Activites that do not • Simplify processes creates values for create values for • Incorporate Lean as practice customers customers – Scope: all specialist departments, intensive internal Process/ involvement service – External expertise on methodology and working Quality/ Flexibility: model variation: Adjust the organisation Deviations from the to suit the customers’ – Time frame: agreed delivery create needs/services • April – December 2011 additional work provided 67
Summary – key figures Group Amounts in NOK million 31.03.11 31.03.10 Change Change % RESULT Result before tax 381 260 121 46.5% STATEMENT OF FINANCIAL POSITION Total assets 68 202 64 086 4 116 6.4% Gross lending 49 638 48 429 1 209 2.5% Deposits from customers 39 402 35 497 3 905 11.0% KEY FIGURES 31.03.11 31.03.10 Change Change % Core capital adequacy ratio 10.7% 10.4% 0.3% After-tax return on equity capital 23.3% 15.9% 7.4% Cost/income 38.6% 40.1% -1.5% Manyear 791 774 17 Parent bank Result per Equity Certificate 1.34 1.56 -0.22 68
SpareBank 1 Nord-Norge 1st quarter report 2011 Very good result. The Bank’s financial strength remains strong . Main features (figures and percentages in brackets refer to the same interim period in 2010): • Operating result before tax NOK 381 million • Low losses on loans bearing in mind the macro-economic (NOK 260 million). situation: Net losses totalled NOK 10 million (NOK 21 • Return on equity capital after tax 23.3 per cent million). (15.9 per cent). • Lending growth during the last 12 months (including • Result per Equity Certificate (EC) (Parent Bank): loans transferred to SpareBank 1 Boligkreditt): 6.1 per NOK 2.41 (NOK 1.48). cent (5.2 per cent). • The underlying banking operations is good. • Retail banking market 7.0 per cent (including SpareBank Result from core operations before losses NOK 1 Boligkreditt) 149 million (NOK 145 million). • Corporate banking market 4.1 per cent • The total contribution to result from • During the last 12 months, the accounts show an subsidiaries is NOK 195 million (NOK 23 increase in lending of 2.5 per cent (-4.9 per cent). million). • Deposit growth last 12 months: 11.0 per cent (0.9 per • Net result from financial investments NOK cent). 242 million (NOK 76 million); • Retail market 6.7 per cent • SpareBank 1 Gruppen AS' NOK 28 million • Corporate market 14.6 per cent • Other joint ventures in the SpareBank 1 Alliance • Public market 18.0 per cent NOK 21 million • Overall deposit coverage ratio: 79.4 per cent (73.3 %). • Gains on the bank's share portfolio NOK 176 million • Net losses interest-bearing portfolio NOK 27 mill • The Bank has good financial strength with the Group’s core capital adequacy ratio at 10.7 per cent. • FX and financial derivatives NOK 43 million • Overall cost control under control. Cost • Continued satisfactory liquidity. income ratio: 38.6 % (40.1 %). • In Q1 2011, a bonus issue was carried out together with a split of the bank's equity certificates. Furthermore, the bank's Supervisory Board has passed a resolution to strengthen the bank's equity by way of new issues for up to NOK 600 million 69
70
Contact information SpareBank 1 Nord-Norge P O Box 6800 9298 Tromsø CEO Deputy CEO CFO Hans Olav Karde Oddmund Åsen Rolf Eigil Bygdnes Tlph 901 51 981 Tlph 906 72 757 Tlph 905 19 774 Financial calendar 2011 Internet: SNN home page and internet bank: www.snn.no Q1 28. April Hugin Online: www.huginonline.no Q2 10. August Equity capital certificates in general: www.egenkapitalbevis.no Q3 26. October 71

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Presentation Q1 2011

  • 1.
    Presentation of 1stQuarter Report 2011 Oslo, 28 April 2011 1 1
  • 2.
    SpareBank 1 Nord-NorgeGroup Headoffice: Tromsø Organization: 5 regions Regional branches: Hammerfest Tromsø Harstad Bodø Mo i Rana Local branches: 76 Number of man-years Group: 788 2
  • 3.
    Organisation of thefinancial services Group SpareBank 1 Nord-Norge Financial Services Group SpareBank 1 Gruppen AS Financial Services Group Equity stake 19,5 % SpareBank 1 Nord-Norge SpareBank 1 Utvikling DA Invest ASA Systems development Investment company Equity stake 17.74 % Equity stake 100 % - Tromsø SpareBank 1 Finans Bank 1 Oslo AS Leasing/factoring Bank - Bodø Equity stake 100 % Equity stake 19.5 % - Tromsø EiendomsMegler 1 SpareBank 1 Boligkreditt AS - Bodø Nord-Norge AS Covered Bonds Company Real estate brokerage - Alta Equity stake 15.74 % Equity stake 100 % - Hammerfest - Kirkenes North-West 1 Alliance Bank SpareBank 1 Næringskreditt AS - Mo i Rana Financing Bank - Harstad Equity stake 75 % Commercial property Equity stake 23.5 % - Sandnessjøen - Finnsnes SpareBank 1 Nord-Norge BN Bank ASA Forvaltning ASA Bank Asset Management Equity stake 23.5 % Equity stake 100 % 3
  • 4.
  • 5.
    Northern Norwegian tradeand industry on the right track • Growth in production in Northern Norwegian trade and industry – Export records in the marine sector – Increasing export of industrial products – Increasing activity in Northern Norwegian industry – Major increase in number of foreign tourists – Winter tourism increasing • Large investment plans ensure growth – Further development of oil and gas – Investment plans in electricity supply • Continued low unemployment: 2.8% completely unemployed in March 3 counties • Great faith in continued growth in 88 municipalities turnover and more jobs in Northern 465,000 inhabitants Norwegian enterprises 5
  • 6.
    More money inhouseholds • Increase in turnover in retail • Increase in sales of new cars • Higher increase in deposits in Northern Norway than in the rest of the country • Higher expectations among households – with regard to own economy – with regard to the region's economy 6
  • 7.
    Scarcity of competentlabour a challenge Competition for labour • Scarcity of labour – a threat to the growth potential of trade and industry • Scattered settlement and numerous small businesses represent a challenge in the struggle for labour • Apprentices will be an important recruitment strategy • Demographic developments lead to greater demands for public services Trade and industry requires competence • Competence: Formal and informal knowledge, abilities and attitudes • Competent labour of vital importance for innovation and added value • Informal competence important to uphold diversity in Northern Norwegian trade and industry 7
  • 8.
    Low unemployment inNorthern Norway Low unemployment – a challenge to the region Northern Norway Norway Num Numb • Unemployment in Northern Norway % % ber er lower than the country average Completely 6,82 74,19 2.8 2.9 unemployed 7 0 • Aging population reduces the working population 1,52 18,02 In schemes 0.6 0.7 7 2 Gross 8,35 92,21 • Increased competence mismatch 3.4 3.6 unemployed 4 2 4,00 30,87 • Recruitment problems greater than Available jobs 3 9 country average in all sectors Job offers ratio (Gross 2.1 3.0 • Lack of qualified labour may limit unemployed/a investments in the north vailable jobs) Source: NAV, 1 April 2011 8
  • 9.
    Financial goals • Solidity • Profitability • Top line growth • Effectivenss • Market shares 9
  • 10.
    Financial goals: Newgoals for capital adequacy ratio (December 2010) • Core capital ratio: 11 per cent or higher • SpareBank 1 Nord-Norge aims to emerge as an undisputedly solid bank. • The capital adequacy goal is based on the Group's internal capital adequacy assessment process (ICAAP). The capital goal is expressed based on the current statutory regulation of capital adequacy. • The Group's capital adequacy in a projected crisis scenario must have adequate buffers so that the core capital adequacy does not fall below 8 per cent. Adaptation to the goal of a capital adequacy ratio of 11 per cent will take place over time. With the expected profit performance the Group aims to achieve this goal by the end of 2013. 10
  • 11.
    Capital adequacy ratio- Group Parent bank Group (Amounts in NOK million) 31.12.10 31.03.10 31.03.11 31.03.11 31.03.10 31.12.10 4 351 3 895 4 187 Core capital 5 259 4 687 5 334 549 575 552 Supplementary capital 490 636 515 4 900 4 470 4 739 Equity and related capital resources 5 749 5 323 5 849 Minimum requirements subordinated capital, Basel I I 1 954 1 876 1 886 Total credit risk IRB 1 779 1 762 1 840 607 569 636 Credit risk standardised approach 1 647 1 362 1 492 130 73 216 Debt risk 216 73 126 19 18 16 Equity risk 65 36 46 17 0 16 Currency risk 16 0 17 242 242 258 Operational risk 273 284 284 0 0 0 Transitional arrangements 52 173 226 - 71 - 69 -71 Deductions - 117 - 78 - 114 2 898 2 709 2 957 Minimum requirements subordinated capital 3 931 3 612 3 917 13.53 % 13.18 % 12.82 % Capital adequacy ratio 11.70 % 11.79 % 11.95 % 12.01 % 11.49 % 11.33 % Core capital ratio 10.70 % 10.38 % 10.90 % 11
  • 12.
    Equity - bonusissue and split completed Bonus issue • NOK 298.5 million transferred from the Dividend Equalisation Fund to the Equity Certificate Capital. After this, the Dividend Equalisation Fund amounts to: NOK 155 million • Number of equity certificates increased; 3 old certificates entitled the bearer to 1 new • The equity certificate holders' priority with regard to capital and risk improved Split: • Each equity certificate split in two. The new nominal value per equity certificate is NOK 25. Desired effect of bonus issue and split: • Increased liquidity in the equity certificate • Will contribute to make the equity certificate more available and thereby strengthen the financial instrument's position as well-suited for private savings. 12
  • 13.
    Equity ratio -rights issue and private placement approved Rights issue up to NOK 450 million: • Purpose: Improve the Bank's financial strength and increase the liquidity in the equity certificates • Amount: NOK 450 million - guaranteed fully subscribed • Subscription price determined by the Bank's Main Board of Directors on 5 May 2011 in line with market practice. Probable price 20-30% lower than market price. • Application for approval of prospectus is being processed by the Financial Supervisory Authority of Norway A private placement of up to NOK 150 million • Three target groups: • The Savings Bank Foundation (the foundation has at its disposal NOK 154.6 million) • Employees, members of the Bank's Main Board of Directors and regional boards of directors • One or more selected institutional investors (optional) • Will be carried out in accordance with normal market conditions after completion of the rights issue • Any premium that exceeds book equity per equity certificate on a group basis will be split between the equity certificate premium reserve and the compensation fund relative to the equity certificate ratio after the issue. 13
  • 14.
    The Foundation, SparebankstiftelsenSpareBank 1 Nord-Norge • In March 2010, the Bank's Supervisory Board resolved to establish the foundation "Sparebankstiftelsen SpareBank 1 Nord-Norge" • The principal purpose of the foundation is to exercise a long-term, stable ownership of SpareBank 1 Nord-Norge, including participation in future new issues by the Bank. • Totals of NOK 30.5 million and NOK 124.1 million were set aside for this foundation in the year-end allocations for 2009 and 2010 respectively. • Establishment of the foundation has been approved by the Financial Supervisory Authority of Norway • The Foundation's Board of Directors and general assembly have been formally elected. Chairman of the Board: former Director Information og Public Relations, Kjell Kolbeinsen 14
  • 15.
    SpareBank 1 Nord-Norge- issues SpareBank 1 Nord-Norge - issues Provisional time schedule (key dates): • March/April 2011: Supervisory Board meetings; formal approval granted Bonus issue and split completed • 5 May 2011 Determination of conditions and pricing for the issues • 6 May 2011: The equity certificates are converted to exclusive rights to receive subscription rights to the rights issue • 12-26 May 2011: Subscription period and trading of subscription rights on Oslo Børs (the Oslo Stock Exchange) • 01 June 2011: Allocation of new equity certificates in the rights issue • 07 June 2011: Listing of new equity certificates from the rights issue on Oslo Børs 15
  • 16.
    Financial targets • Capital adequacy ratio • Effectiveness – Core-capital coverage: – The targeted cost ratio is 11 % or higher maximum 50 % of income and shall be comparable to the level of competing banks in Norway • Profitability – ROE shall be comparable • Top-line growth to the performance of competing banks in – The growth in interest Norway. The targeted contribution and provisions is after-tax return is targeted to be 2 percentage minimum 6 percentage points above the growth in points above the yield on operating costs long-term government bonds 16
  • 17.
    Profit and lossaccount - Group (Amounts in NOK million) 31.03.11 31.03.10 Net interest income 275 272 Net fee-, commision and other operating income 120 121 Net income from financial investments 242 76 Total net income 637 469 Total costs 246 188 Result before losses and write-downs 391 281 Net losses and write-downs 10 21 ROE Result before tax 381 260 23.3 % Tax 48 56 Minority interests 0 0 Result for the period 333 204 17
  • 18.
    Quarterly Summary –Profit and loss account figures (Amounts in NOK million) 1Q11 4Q10 3Q10 2Q10 1Q10 Net interest income 275 285 291 281 272 Net fee-, commision and other operating income 120 128 131 133 121 Net income from financial investments 242 148 76 104 76 Total net income 637 561 498 518 469 Total costs 246 276 237 256 188 Result before losses and write-downs 391 285 261 262 281 Net losses and write-downs 10 43 1 22 21 Result before tax 381 242 260 240 260 Return on equity capital 23.3 % 15.3 % 15.6 % 15.6 % 15.9 % Cost/income 38.6 % 49.2 % 47.6 % 49.4 % 40.1 % 18
  • 19.
    Quarterly Summary –net fee-, commision and other operating income (Amounts in NOK million) 1Q11 4Q10 3Q10 2Q10 1Q10 Guarantee c ommissions 4 4 4 4 3 Other fee- and commission inc ome 134 143 145 148 139 Fee- and commission inc ome 138 147 149 152 142 Fee- and commission costs 19 22 21 20 22 Net fee- and commission inc ome 119 125 128 132 120 Other operating income 1 1 -1 1 1 Operating- and sales income real estate 0 2 4 0 0 Total commissions and other income 1 3 3 1 1 Net fee-, c ommision and other operating income 120 128 131 133 121 19
  • 20.
    Total commission andother income Per 1Q (in NOK million) 1Q11 4Q10 3Q10 2Q10 1Q10 2011 2010 Guarantee commissions 4 4 4 4 3 4 3 Interbank commissions 5 7 9 9 8 5 8 C redit arrangement fee 3 4 4 4 3 3 3 Arrangement fee from SpareBank 1 Boligkreditt 24 19 19 24 27 24 27 Arrangement fee from SpareBank 1 Finans 0 0 1 0 1 0 1 Securities trading, administration and trust department services 11 14 7 14 12 11 12 Payment transmission services 48 51 56 50 46 48 46 Brokerage commission 15 16 23 20 14 15 14 Insurance services 24 27 25 24 24 24 24 Other commission income 4 5 1 3 4 4 4 Total commissions income 138 147 149 152 142 138 142 Operating- and sales income real estate 1 2 2 1 1 1 1 Other operating income 0 1 1 0 0 0 0 Total other operating income 1 3 3 1 1 1 1 C ommission expenses 19 22 21 20 22 19 22 Total commissions and other income 120 128 131 133 121 120 121 20
  • 21.
    Group companies Result before tax 31.03.11 31.03.10 SpareBank 1 Finans Nord-Norge AS 17 104 15 667 SpareBank 1 Nord-Norge Invest AS 177 889 5 869 Eiendomsdrift AS 0 1 382 EiendomsMegler 1 Nord-Norge AS - 443 - 281 SpareBank 1 Nord-Norge Forvaltning ASA 447 816 North-West 1 Alliance Bank - 184 0 Total 194 813 23 453 21
  • 22.
    Core banking activities (Amounts in NOK million) 31.03.11 31.03.10 Change Earnings before losses 149 205 -56 Net losses 10 21 11 A non-recurring effect of recognising income from reduced pension commitments 60 0 60 Core banking activities after 139 124 15 losses 22
  • 23.
    Results – theGroup In comparison with 2010, the reasons for the change in the pre-tax result are as follows: • Increase in net interest income + NOK 3 mill. • Reduction in net commission income - NOK 1 mill. • Increase in income from financial investments + NOK 166 mill. • Unchanged other operating income NOK 0 mill. • Increase in costs - NOK 58 mill. • Reduction in net losses + NOK 11 mill. Total + NOK 121 mill. 23
  • 24.
    Very good underlyingbanking operations - (excl. income from financial investments) Group (Amounts in NOK million) 1Q11 4Q10 3Q10 2Q10 1Q10 Net interest income 275 285 291 281 272 Net fee- and commission income 119 125 128 132 120 Other operating income 1 3 3 1 1 Total costs 246 276 237 256 188 Income, core banking 149 137 185 158 205 Net losses and write-downs 10 43 1 22 21 Income, core banking after losses and write-downs 139 94 184 136 184 24
  • 25.
    Net interest income- Group 4.00 % 350 300 3.00 % 250 200 2.00 % 150 100 1.00 % 50 0 0.00 % 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 NOK Million - Boligkreditt Perc.of aver.tot.ass. Perc. incl. Boligkreditt 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 NOK Million 302 279 294 298 272 281 291 285 275 - Boligkreditt 12 11 17 26 27 24 19 19 24 Perc.of aver.tot.ass. 1.87 % 1.70 % 1.77 % 1.85 % 1.70 % 1.73 % 1.74 % 1.66 % 1.61 % Perc. incl. Boligkreditt 1.78 % 1.61 % 1.67 % 1.74 % 1.59 % 1.58 % 1.56 % 1.61 % 1.56 % 25
  • 26.
    Lending, Parent bank– corporate market Loan volum corporate Interest margin corporate 23 000 2.50 22 000 2.00 21 000 Interest contribution 20 000 The interest margin is 1.50 defined as the 19 000 difference NOK between the 18 000 customer 1.00 lending (deposit) 17 000 interest rate and the Bank's 16 000 average 0.50 capital markets 15 000 funding rate. 14 000 - jun.09 jun.10 mar.0 9 sep.09 dec.09 mar.10 sep.10 dec.10 mar.1 1 26
  • 27.
    Lending, Parent bank– retail market Loan volum retail banking Interest margin retail banking 45 000 1.80 44 000 1.60 43 000 1.40 Interest contribution 42 000 1.20 The interest margin is 41 000 1.00 defined as the difference NOK between the 40 000 0.80 customer lending 39 000 0.60 (deposit) interest rate and the Bank's 38 000 0.40 average capital markets 37 000 0.20 funding rate. 36 000 - jun.09 jun.10 mar.0 9 sep.09 dec.09 mar.1 0 sep.10 dec.10 mar.1 1 27
  • 28.
    Customer deposits, Parentbank – corporate market Deposit volum c orporate Interest margin corporate 21 000 2.00 20 000 1.80 1.60 19 000 Interest contribution 1.40 18 000 The interest 1.20 margin is 17 000 defined as the NOK 1.00 difference 16 000 between the 0.80 customer lending 15 000 0.60 (deposit) interest rate 14 000 0.40 and the Bank's average 13 000 capital 0.20 markets funding rate. 12 000 - jun.09 jun.10 mar.09 sep.09 dec.09 mar.10 sep.10 dec.10 mar.11 28
  • 29.
    Customer deposits, Parentbank – retail market Deposit volum retail banking Interest margin retail banking 22 000 2.90 2.70 21 000 2.50 20 000 2.30 Interest contribution 19 000 2.10 The interest 1.90 margin is 18 000 defined as the NOK 1.70 difference 17 000 between the 1.50 customer lending 16 000 1.30 (deposit) interest rate 1.10 and the Bank's 15 000 average 0.90 capital 14 000 markets 0.70 funding rate. 13 000 0.50 jun.09 jun.10 mar.0 9 sep.09 dec.09 mar.10 sep.10 dec.10 mar.1 1 29
  • 30.
    Financial targets • Capital adequacy ratio • Effectiveness – Core-capital coverage: – The targeted cost ratio is 11 % or higher maximum 50 % of income and shall be comparable to the level of competing banks in Norway • Profitability – ROE shall be comparable • Top-line growth to the performance of competing banks in – The growth in interest Norway. The targeted contribution and provisions is after-tax return is targeted to be 2 percentage minimum 6 percentage points above the growth in points above the yield on operating costs long-term government bonds 30
  • 31.
    Group operating costs (NOK Million) 31.03.11 31.03.10 Change Wages and salaries 99 98 1 Pension costs 9 -48 57 Social costs 11 11 0 Total personnel costs 119 61 58 Administration c osts 68 69 -1 Total personnel- and general administration c osts 187 130 57 Deprec iation and write-downs of fixed assets 11 12 -1 Total operating costs 48 46 2 Total c osts 246 188 58 31
  • 32.
    Group operating costs 300 53 % 51 % 250 49 % 200 47 % NOK mill. 45 % 150 43 % 100 41 % 39 % 50 37 % 0 35 % 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Group operating costs Cost/income 1Q11 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Group operating costs 243 226 227 276 188 256 237 276 246 Cost/income 50.1 % 50.8 % 39.3 % 42.4 % 40.1 % 49.4 % 47.6 % 49.2 % 38.6 % 32
  • 33.
    Key figures balancesheet (Amounts in NOK million) STATEMENT OF Change Change % FINANCIAL POSITION 31.03.11 31.03.10 Total assets 68 202 64 086 4 116 6.4% Gross lending 49 638 48 429 1 209 2.5% Loans and advances to customers including agency 63 512 59 872 3 640 6.1% loans Deposits from customers 39 402 35 497 3 905 11.0% 33
  • 34.
    Good development ofcustomer deposits Deposits from customers 40 000 39 000 Volume according to 38 000 markets 31.03.11 37 000 36 000 35 000 Corp. 34 000 29 % Retail 33 000 51 % 32 000 Public 31 000 20 % 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 34
  • 35.
    Deposit growth households Deposit growth households. 12 mth. growth 12 10 8 % 6 4 2 0 01 07 01 07 01 07 01 07 01 07 M M M M M M M M M M 06 06 07 07 08 08 09 09 10 10 20 20 20 20 20 20 20 20 20 20 SNN, Retail clients Households Source: Statistisk Sentralbyrå, The credit indicator C2, April 2011 & SNN Bare, March 2011 35
  • 36.
    Deposit growth corporates Deposit growth corporates. 12 mth. growth 40 35 30 25 20 % 15 10 5 0 -5 -10 01 07 01 07 01 07 01 07 01 07 M M M M M M M M M M 06 06 07 07 08 08 09 09 10 10 20 20 20 20 20 20 20 20 20 20 SNN, Corporate clients Corporates Source: Statistisk Sentralbyrå, The credit indicator C2, April 2011 & SNN Bare, March 2011 36
  • 37.
    Group lending portfolioaccording to markets Volume according to markets 31.03.11 70 000 Boligkreditt Loans and advances to customers Corp/ Pub 60 000 31 % Retail incl. Bolig- kreditt 69 % 50 000 40 000 Volume incl. Boligkreditt 30 000 20 000 Corp/ Pub Retail 39 % excl. Bolig- kreditt 10 000 61 % 0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Volume excl. Boligkreditt 37
  • 38.
    Credit growth households Credit growth households. 12 mth. growth 18 16 14 12 10 % 8 6 4 2 0 01 07 01 07 01 07 01 07 01 07 M M M M M M M M M M 06 06 07 07 08 08 09 09 10 10 20 20 20 20 20 20 20 20 20 20 SNN, Retail clients Households Source: Statistisk Sentralbyrå, The credit indicator C2, April 2011 & SNN Bare, March 2011 38
  • 39.
    Credit growth corporates Credit growth corporates. 12 mth. growth 24 22 20 18 16 14 12 % 10 8 6 4 2 0 -2 01 07 01 07 01 07 01 07 01 07 M M M M M M M M M M 06 06 07 07 08 08 09 09 10 10 20 20 20 20 20 20 20 20 20 20 SNN, Corporate clients Corporates Source: Statistisk Sentralbyrå, The credit indicator C2, April 2011 & SNN Bare, March 2011 39
  • 40.
    Credit area • Quality • Portfolio • Migration, commitments in default and losses 40
  • 41.
    Portfolio • High quality in lending portfolio. Steady level of default - still at low levels. • A cautious lending policy and growth in 2006 – 2009 and few corporate exposures in high risk industries has contributed to an overall low portfolio risk. • The Group's total write-downs in Q1 2011 is lower than the expected normalized level. • The Group’s corporate portfolio is well diversified • Growth in portfolio in sectors with low/moderate risk − Building and construction − Retail trade • Positive migration developments in corporate portfolio 41
  • 42.
    Portfolio - exposure as of 31.03.11 30.000 25.000 20.000 NOK mill 15.000 10.000 5.000 0 Low risk Medium risk High risk Default/impaired Retail market C orporate market SB1 Boligkreditt 42
  • 43.
    Risk change - portfolio change Q1/10 – Q1/11 43
  • 44.
    Group lending bysector (NOK million) 31.03.11 Share 31.03.10 Share Change Change in % Mining and quarrying 70 0,1 % 8 0,0 % 62 775 % Construction 524 1,1 % 495 1,1 % 29 6% Building of ships and boats 21 0,0 % 20 0,0 % 1 5% Electricity, gas, steam an air conditioning supply 980 2,1 % 1 003 2,1 % - 23 -2 % Professional, scientific and technical activities 769 1,6 % 542 1,2 % 227 42 % Finanicial and insurance activities 0 0,0 % 80 0,2 % - 80 -100 % Fishing 1 016 2,2 % 1 496 3,2 % - 480 -32 % Marine aquaculture 206 0,4 % 174 0,4 % 32 18 % Other business support activities 260 0,6 % 267 0,6 % -7 -3 % Activities auxiliary to financial services and insurance activities 205 0,4 % 256 0,5 % - 51 -20 % County muncipalities and muncipalities 152 0,3 % 171 0,4 % - 19 -11 % Manufacturing 1 299 2,8 % 1 204 2,6 % 95 8% Information and communication 159 0,3 % 216 0,5 % - 57 -26 % Crop and animal production 776 1,6 % 679 1,5 % 97 14 % Foreign industrial 0 0,0 % 50 0,1 % - 50 -100 % Real estate activities 6 596 14,0 % 6 439 13,8 % 157 2% Accomodation and food service activities 378 0,8 % 356 0,8 % 22 6% Forestry and logging 5 0,0 % 3 0,0 % 2 67 % Central government and social security funds 0 0,0 % 0 0,0 % 0 0% Support activities for petroleum and natural gas extraction 1 0,0 % 1 0,0 % 0 0% Other service industries 685 1,5 % 686 1,5 % -1 0% Transportation and storage 1 082 2,3 % 961 2,1 % 121 13 % International shipping and pipeline transport 576 1,2 % 638 1,4 % - 62 -10 % Development of building projects 596 1,3 % 610 1,3 % - 14 -2 % Extraction of crude oil and natural gas 42 0,1 % 126 0,3 % - 84 -67 % Unspecified 0 0,0 % 0 0,0 % 0 0% Water supply; sewerage, waste management and remediation activities 105 0,2 % 95 0,2 % 10 11 % Wholesale and retail trade; repair of motor vehicles and motorcycles 1 396 3,0 % 1 211 2,6 % 185 15 % Retail banking market - domestic 29 228 62,0 % 28 826 61,8 % 402 1% Retail banking market - international 44 0,1 % 50 0,1 % -6 -12 % Total retail market 29 272 62,1 % 28 876 61,9 % 396 1% Total public market 17 747 37,6 % 17 616 37,8 % 131 1% Total government 152 0,3 % 171 0,4 % - 19 -11 % Total loans 47 171 100,0 % 46 663 100,0 % 508 1% 44
  • 45.
    Portfolio of corporateproperty lending 100,0 % 90,0 % 86,1 % 80,0 % 70,0 % 60,0 % 50,0 % 40,0 % • Lowest – Low risk, expected 30,0 % loss 0 % - 0.50 % 20,0 % 7,1 % 6,8 % • Medium risk, expected 10,0 % loss 0.50 – 2.00 % 0,0 % Lowest - Low Medium High - Highest • High - Highest risk, expected loss above 2.00 % The portfolio of corporate property represents the Group's highest concentration concerning one single sector – Constitute about 11 percent of total volume The portfolio of corporate property is being dominated by commitments with low risk 45
  • 46.
    Losses and commitmentsin default • Positive loss development. No new losses of essential character. • Commitments in default and commitments in certain sectors are monitored very closely. – Property projects – Property rentals – Housing co-operatives 46
  • 47.
    Defaulted commitments 1000 2,5 % 900 800 2,0 % 700 600 1,5 % MNOK 500 400 1,0 % 300 200 0,5 % 100 Individual write-downs 0 0,0 % 31.12.04 31.12.05 31.12.06 31.12.07 31.12.08 31.12.09 31.12.10 31.03.11 Non-performing commitments 232 251 241 216 307 386 219 250 Bad and doubtful commitments 450 442 323 212 246 185 378 385 without write-downs Individual write-down for impaired 323 269 196 135 203 232 273 271 value Gross non-performing and impaired 2,6 % 2,3 % 1,6 % 1,1 % 1,3 % 1,3 % 1,4 % 1,4 % commitments 47
  • 48.
    Losses on loansand guarantees - Group 350 1,40 % 300 1,20 % 250 1,00 % NOK mill 200 0,80 % 150 0,60 % 100 0,40 % 50 0,20 % 0 0,00 % -50 -0,20 % 2006 2007 2008 2009 2010 31.03.11 Net losses Net losses in % of gross lending incl.agency loans 2006 2007 2008 2009 2010 31.03.11 Individual write-downs for impaired value 20 55 202 163 133 15 Collective write-downs imp. value -36 -13 40 36 -39 -3 Recoveries, previously confirmed losses 27 25 59 14 7 2 Net losses -43 17 183 185 87 10 Net losses in % of gross lending incl.agency loans -0,09 % 0,03 % 0,32 % 0,31 % 0,14 % 0,06 % 48 48
  • 49.
    Loss on lending:The Group's write-downs in 2011 Write-downs 1st quarter 1st quarter 2010 2009 2011 2010 Individual write-downs Retail market 5 5 16 13 Corporate market 8 15 100 127 SpareBank 1 Finans Nord-Norge 1 3 7 11 Other group units 0 0 4 1 Total individual write-downs 13 22 127 152 Collective write downs and other -3 -1 -40 33 value change items Total write-down on loans and 11 21 87 185 guarantees • The Group's total write-downs in 2011 is lower than the expected normalized level. 49
  • 50.
  • 51.
    Income from financialinvestments (Amounts in NOK million) 31.03.11 31.03.10 Dividends 1 9 Income from joint ventures 49 41 Gains/losses and net value changes on certificates and bonds -27 11 Gains/losses and net value changes on shares 176 21 Gains/losses and net value changes on foreign exchange 8 8 Gains/losses and net value changes on other financial derivatives 35 -14 Income from financial investments 242 76 51
  • 52.
    Interest-bearing portfolio ABS Industry, 0,1 % CDO Norway 1,0 % 4,7 % Subord. debt, Norway Fin. sector, 1,8 % Gov. cert. abroad 16,3 % Cert. 5,2 % 9,7 % Fin. sector, Norway 13,1 % Gov. guar. bonds Public bond % 2,2 0,8 % Covered bonds 45,1 % 52
  • 53.
  • 54.
    Equity Certificates (ECCs)- holder structure 35 31.03.10 31.03.11 30 25 20 % 30.7 15 23.1 25.4 27.0 25.2 20.4 10 5 6.3 5.2 0 10 largest Equity 20 largest Equity Holders residing in Foreign Holders Certificate holders Certificate holders North Norway 54
  • 55.
    The 20 largestECC holders as at 31.03.11 Number of Share of total Equity Certificate holders Equity Certificates Equity Certificate capital Pareto Aksjer Norge 2 711 884 5.68 % Protector Eiendom AS 1 491 664 3.12 % Pareto Aktiv 1 258 560 2.63 % MP Pensjon 1 115 410 2.34 % Frank Mohn AS 1 016 964 2.13 % Tonsenhagen Forretningssentrum AS 851 002 1.78 % Citibank N.A. 742 804 1.56 % Pareto VPF 645 112 1.35 % Framo Development AS 636 794 1.33 % Sparebanken Rogalands Pensjonskasse 586 882 1.23 % Forsvarets Personellservice 464 890 0.97 % Karl Ditlefsen, Tromsø 411 624 0.86 % Sparebankstiftelsen DNBNOR 409 274 0.86 % Nordea Bank Norge - markets 391 786 0.82 % Trond Mohn 382 076 0.80 % Nordisk Finans Invest A/S 350 880 0.73 % Fred Olsen & Co’s pensjonskasse 324 764 0.68 % Troms Kraft Invest AS, Tromsø 306 968 0.64 % Sparebank 1 Ringerike Hadeland 303 308 0.63 % Tromstrygd, Tromsø 258 666 0.54 % SUM 14 661 312 30.69 % 55
  • 56.
  • 57.
    Funding instruments/diversification asat 31.03.11 Category <1yr >1yr Total Lower Tier 2, EUR 0 0 0 Lower Tier 2, NOK 0 1.000 1.000 EMTN, EUR 2.022 309 2.331 Tier 1, Perpetual, USD 0 336 336 NOK BONDS 821 11.281 12.102 Government 1.000 0 1.000 Schuldschein, EUR 0 0 0 Cert's, NOK 0 0 0 Gov. swap arr. 0 2.562 2.562 TOTAL, SHORT TERM FUNDING 3.843 TOTAL, LONG TERM FUNDING 15.488 TOTAL, ALL FUNDING 19.331 57
  • 58.
    Funding and liquiditymanagement Maturity profile of capital markets funding as at 31.03.11 Funding Maturity Next 12 Months 2,250 2,000 1,750 • Good liquidity Billion NOK 1,500 1,250 1,000 0,750 • Liquidity buffer 9,2 billion NOK per 31.03.2011 0,500 0,250 0,000 may.2011 jun.2011 jul.2011 aug.2011 sep.2011 oct.2011 nov.2011 dec.2011 jan.2012 feb.2012 mar.2012 apr.2012 may.2011 Annual Funding Maturity • Net refinancing need next 12 months 4,7 billion NOK 6,000 5,000 4,000 Billion NOK 3,000 2,000 1,000 0,000 2011 2012 2013 2014 2015 2016 2017 58
  • 59.
    Liquidity buffer asat 31.03.11 Liquidity Buffer 10,000 9,000 8,000 7,000 Billion NOK 6,000 5,000 4,000 3,000 2,000 1,000 0,000 1 2 3 1 2 11 12 12 13 1 11 2 12 3 11 11 11 12 12 12 1 2 1 12 2 13 3 .1 .1 .1 l.1 l.1 .1 .1 .1 t.1 t.1 r.1 r.1 r.1 n. n. n. n. g. p. v. c. g. p. v. c. b. b. ay ay ay ar ar ar ju ju oc oc ap ap ap ju ja ju ja au se no de au se no de fe fe m m m m m m • Liquidity buffer: Cash, drawing rights in Norges Bank, bond portfolio (not deposited in Norges Bank), equities and mortgage loans prepared for transfer to SpareBank 1 Boligkreditt. • Assumption: No new capital markets funding and 7 % growth in both lending and deposits. 59
  • 60.
  • 61.
    Strategy 2012 –Market forces The strongest market forces: • More stringent regulations and public control • Higher capital requirements, the banks are building capacity for growth • Higher funding costs • Increased pressure on margins • Increased customer power • Focus on profitable customers • Focus on new revenue opportunities • Simplified business models • Better risk management • Reduction of the cost level 61
  • 62.
    Trends – TheFinance Sector • Mobile solutions are becoming more important • The banks are facing challenges in terms of mobile payment solutions • Much focus on contact-free payment • Closer ties between – customer, customer needs and location and – The range of financial services offered will provide more effective solutions to customer and bank • More digital services • Development of customized customer solutions • Increased participation via online communities – dialogue through several channels 62
  • 63.
    Trends – Consumerbehaviour • Word of mouth increases its importance as an influence on behaviour and attitudes – Editorial publicity becomes less important • Digitization continues – electronic solutions preferred • Increased number of customers use payment cards, regardless of amount 63
  • 64.
    Strategy 2012 –Higher market shares Objective • Higher market shares in all product groups Process and measures • Goal hierarchy adapted to the local market area and the bank's position • Clearer market positioning – Important customer segments – Important market areas • Increased activity aimed at existing and potential customers • Improved management information – Activity follow-up of advisers – Follow-up of branches with regard to results – Balanced score card 64
  • 65.
    Strategy 2012 –Customer-oriented distribution Target • Clear differentiation and increased interaction between distribution channels Process and measures • Local bank– cultivate advisory services – Financing, savings, insurance – All advisers are to be authorised – Cashier desks to be phased out in 2011 – Larger entities, few traditional branches • Customer centre– first line and hub – First line customer service – Hub in channel interaction • Online bank and mobile bank; wider range of services in digital channels – Personal finance – Standard banking services – Simple advisory services 65
  • 66.
    Strong growth indigital surfaces in 2010 • SMS notifications: 120,000 messages per month • 2,500 loan applications via internet as at December 2010 • The iPhone app downloaded 55,000 times. Android app downloaded 12,000 times (figures for SpareBank 1) • Interaction between digital and office channel increasingly important 66
  • 67.
    Enhancing the efficiencyof staff processes • Start-up project 2011 Lean: Create more with less • Project mandate – Purpose Flow in processes: Waste: Continual flow that Activites that do not • Simplify processes creates values for create values for • Incorporate Lean as practice customers customers – Scope: all specialist departments, intensive internal Process/ involvement service – External expertise on methodology and working Quality/ Flexibility: model variation: Adjust the organisation Deviations from the to suit the customers’ – Time frame: agreed delivery create needs/services • April – December 2011 additional work provided 67
  • 68.
    Summary – keyfigures Group Amounts in NOK million 31.03.11 31.03.10 Change Change % RESULT Result before tax 381 260 121 46.5% STATEMENT OF FINANCIAL POSITION Total assets 68 202 64 086 4 116 6.4% Gross lending 49 638 48 429 1 209 2.5% Deposits from customers 39 402 35 497 3 905 11.0% KEY FIGURES 31.03.11 31.03.10 Change Change % Core capital adequacy ratio 10.7% 10.4% 0.3% After-tax return on equity capital 23.3% 15.9% 7.4% Cost/income 38.6% 40.1% -1.5% Manyear 791 774 17 Parent bank Result per Equity Certificate 1.34 1.56 -0.22 68
  • 69.
    SpareBank 1 Nord-Norge1st quarter report 2011 Very good result. The Bank’s financial strength remains strong . Main features (figures and percentages in brackets refer to the same interim period in 2010): • Operating result before tax NOK 381 million • Low losses on loans bearing in mind the macro-economic (NOK 260 million). situation: Net losses totalled NOK 10 million (NOK 21 • Return on equity capital after tax 23.3 per cent million). (15.9 per cent). • Lending growth during the last 12 months (including • Result per Equity Certificate (EC) (Parent Bank): loans transferred to SpareBank 1 Boligkreditt): 6.1 per NOK 2.41 (NOK 1.48). cent (5.2 per cent). • The underlying banking operations is good. • Retail banking market 7.0 per cent (including SpareBank Result from core operations before losses NOK 1 Boligkreditt) 149 million (NOK 145 million). • Corporate banking market 4.1 per cent • The total contribution to result from • During the last 12 months, the accounts show an subsidiaries is NOK 195 million (NOK 23 increase in lending of 2.5 per cent (-4.9 per cent). million). • Deposit growth last 12 months: 11.0 per cent (0.9 per • Net result from financial investments NOK cent). 242 million (NOK 76 million); • Retail market 6.7 per cent • SpareBank 1 Gruppen AS' NOK 28 million • Corporate market 14.6 per cent • Other joint ventures in the SpareBank 1 Alliance • Public market 18.0 per cent NOK 21 million • Overall deposit coverage ratio: 79.4 per cent (73.3 %). • Gains on the bank's share portfolio NOK 176 million • Net losses interest-bearing portfolio NOK 27 mill • The Bank has good financial strength with the Group’s core capital adequacy ratio at 10.7 per cent. • FX and financial derivatives NOK 43 million • Overall cost control under control. Cost • Continued satisfactory liquidity. income ratio: 38.6 % (40.1 %). • In Q1 2011, a bonus issue was carried out together with a split of the bank's equity certificates. Furthermore, the bank's Supervisory Board has passed a resolution to strengthen the bank's equity by way of new issues for up to NOK 600 million 69
  • 70.
  • 71.
    Contact information SpareBank 1 Nord-Norge P O Box 6800 9298 Tromsø CEO Deputy CEO CFO Hans Olav Karde Oddmund Åsen Rolf Eigil Bygdnes Tlph 901 51 981 Tlph 906 72 757 Tlph 905 19 774 Financial calendar 2011 Internet: SNN home page and internet bank: www.snn.no Q1 28. April Hugin Online: www.huginonline.no Q2 10. August Equity capital certificates in general: www.egenkapitalbevis.no Q3 26. October 71